Yahoo Finance Jupiter Fund Management Plc Just Missed Earnings - But Analysts Have Updated Their Models
Last week, you might have seen that Jupiter Fund Management Plc (LON:JUP) released its interim result to the market. The early response was not positive, with shares down 4.2% to UK£2.72 in the past week. Revenues were in line with forecasts, at UK£224m, although statutory earnings per share came in 16% below what the analysts expected, at UK£0.085 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for Jupiter Fund Management
Following last week's earnings report, Jupiter Fund Management's eleven analysts are forecasting 2021 revenues to be UK£516.9m, approximately in line with the last 12 months. Statutory earnings per share are predicted to swell 11% to UK£0.25. Yet prior to the latest earnings, the analysts had been anticipated revenues of UK£492.9m and earnings per share (EPS) of UK£0.25 in 2021. There doesn't appear to have been a major change in sentiment following the results, other than the small increase to revenue estimates.
Even though revenue forecasts increased, there was no change to the consensus price target of UK£3.04, suggesting the analysts are focused on earnings as the driver of value creation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Jupiter Fund Management at UK£3.48 per share, while the most bearish prices it at UK£2.20. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that sales are expected to reverse, with a forecast 1.1% annualised revenue decline to the end of 2021. That is a notable change from historical growth of 4.9% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 3.7% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Jupiter Fund Management is expected to lag the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also upgraded their revenue estimates, although our data indicates sales are expected to perform worse than the wider industry. The consensus price target held steady at UK£3.04, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Jupiter Fund Management going out to 2023, and you can see them free on our platform here..
Even so, be aware that Jupiter Fund Management is showing 2 warning signs in our investment analysis , you should know about...
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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